May 9, 2015

Hurdles of Trans-Pacific Partnership Agreement (TPP) and inequality

Don't let the Trans Pacific Partnership Agreement (TPP) increase inequality in this country and be like the tip of an iceberg where some things are hidden. As it is presently written the additional inequality is ignored.

There are hurdles to overcome regarding TPP between the United States, Australia, Brunei, Canada, Chile, Malaysia, Mexico, Peru, Singapore, Vietnam and Japan. The countries taking part in TPP would represent nearly 40 percent of the global GDP and one-third of all world trade. The United States as a whole stands to gain because of TPP, however most of the gains go to the citizens in higher income brackets unless steps are taken to assure the spreading of wealth and opportunity. As it presently is being proposed this is not happening.

All things being equal; if all countries had the same safety and environmental standards there still would be a disparity in the wages paid to workers for the same job because of labor supply and demand, technology, cost of living and other factors. As a result, the worker in Vietnam is able to work for less than his counterpart in the U.S. It is the responsibility of our government to assure as many citizens as possible benefit from the trade agreement.One way to protect the worker in the United States and improve his lot is to make him more valuable by increasing his education. As low paying jobs disappear in this country the displaced worker increases his economic position because of education. Nike and other multinational companies will benefit from the trade agreement, as will their shareholders. We must make sure the working class and impoverished in this country also benefit.by more than lowering the cost of goods and services that they will not be able to afford because someone in Thailand does it for a lower wage.

A partial answer is providing, at no cost, two years of college or trade school to anyone who qualifies academically. This then will give our citizens who are negatively affected by such an agreement the opportunity to better their life and take the steps to leave poverty behind.